Tax humor on television, art imitates life

After practically living at work during tax season, you’d think that I would be sick of hearing anything tax related outside of work. However, I love it when something tax related pops up in the TV shows I watch. Here is a list of a few comical examples I have seen recently. Bonus points to …

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Big changes to moving expenses deduction

As if moving and a career change aren’t stressful enough, the rules around deducting moving expenses have dramatically shifted beginning in 2018 with the passage of the Tax Cuts & Jobs Act (TCJA). Work-related moves for 2018 and beyond Relative to qualified expenses of a work-related move, starting in 2018, both the deduction for qualified …

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Tax reform impacts education tax breaks

The Tax Cuts and Jobs Act modifies qualified tuition programs and the exclusion of student loan discharges from gross income. There was much debate regarding changes to other educational benefits as part of tax reform, including the elimination of the student loan interest deduction, repeal of exclusion of income for graduate student tuition waivers and modifications …

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Tax reform: 2018 tax rates – do they help?

All the talk about tax reform leaves everyone with many questions. The most important question we are all asking is, “how does this affect me?” The most direct way this reform affects everyone is through the tax rates. Let’s recap the rates for 2017. Then we will go through the 2018 rates and income thresholds. …

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Limitation on deduction for interest

If new tax laws excite you then you’re in luck. With the passing of the Tax Cut and Jobs Act, there are many changes to the code for us to explore. Several of these changes will undoubtedly decrease taxes for businesses and their owners. But the new limits on the deduction of business interest isn’t …

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The basics of the expanded child tax credit

Under the new tax reform bill, the Child Tax Credit was raised to $2,000 (increased $1,000 from 2017) per qualifying child. While the criteria for qualifying a child for this credit have not changed from 2017, some of the other rules are different going forward to 2018. Let’s look at how this credit is changing …

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Standard deduction, personal exemptions, new tax law

One of the major changes in the tax reform bill is the changes made to the standard deduction and personal exemptions. This will affect a vast majority of taxpayers, some in a positive way, others not so much. The final version of the GOP Tax bill retains a proposed standard deduction and personal exemption into …

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Medical expense deduction changes under new tax law

From 1986 until 2013, the rules for deducting medical expenses remained unchanged. Expenses were only deductible to the extent that they exceeded 7.5% of a taxpayer’s adjusted gross income (AGI). This resulted in a tax deduction for only a small percentage of taxpayers with high medical expenses. One of the provisions of the Affordable Care …

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New small business/pass-through rules – Part 3

Welcome back for the final installment in the first part of the discussions on the pass-through deduction. If you missed our intro to this topic or the great examples we provided, check out our previous blog posts to get up to speed on this complex but exciting topic. Specified service qualified business income For certain trades …

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New rules for small businesses, pass-throughs – Part 2

The new tax law means major changes to the rules for small businesses and pass-through entities. Today, I will give examples of the change. If you missed our intro to this topic, just click here. Example #1 – Taxable income less than $315,000 married filing joint (MFJ) Taxable Income: 300,000 QBI: 200,000 W-2 Wages from …

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